What is a notice of default in NJ? If you want to understand what the heck is going on, read on.
Basically, this “notice of default” that your bank has sent you is what “triggers” the foreclosure process. By law, this needs to be filed by the lender in order for them to start the process. In addition to sending you a notice of default in the mail, the following will also happen:
- The notice of default is required to be sent to everyone that possesses an interest in the property (this could mean other loans or lenders – even contractors that are owed money for work done to a property). Everyone gets notified so that they are aware of the status of your loan.
- The notice of default must also be posted in a prominent place on the property, so that everyone can see.
- The notice of default must be published in the local newspaper and become public knowledge.
While this may seem very embarrassing to someone that’s going through foreclosure, it’s actually an important protection for homeowners.
At a time before U.S. law required use of notice of default, people would get foreclosed on without any notice.
In fact, there have been times even in recent years where banks have accidentally foreclosed too early and kicked people out of their house outside of the due process and without warning. In fact it’s even happened around New Jersey a few times.
So as you can see, the notice of default is a crucial step within the foreclosure process. It gives anyone that has a certain interest in the property the chance to step forward and try to claim their rights – before it is too late.
If you have already received a notice of default in the mail, you will need to act quickly. Time is not on your side so the sooner you take action, the better.
Make sure to keep this in mind:
1) Remain calm & do not panic.
This probably sounds obvious, but it is the most important thing you can do. It is a given that there is already a tremendous amount of stress pertaining to the property but getting flustered will not get you anywhere. These things didn’t happen overnight, so it is going to take some time to fix.
2) Educate yourself.
It’s important to know exactly how the foreclosure process work and what your rights are at each point. In particular, knowing the timeline is very important. You can learn more about the foreclosure process by clicking here so that you know what’s happening, what is coming up next and what you should be prepared for..
3) Use your resources.
There are also a few non-profit programs and government resources available out there if you qualify. We have another article on that, that you can find here if you’d like more information.. Make sure that you heed good legal and tax advice as you make decisions, it is a good idea to consult with an attorney to make sure that you are making decisions that are best for your situation.
4) Know your options.
There isn’t a way that is best for everyone. Depending on your needs and what you’d like to accomplish, keeping the house may not be in your best interest. In some cases, moving on and getting into a new house that you can afford may be the best option. If you would like to see your options for selling the house and getting rid of it quickly, give us a call, we’d love to help walk you through your options.
Remember that the bank that is coming after you doesn’t really want your property. They want your money, and the way that you handle yourself and conduct business means a lot. They will be much more willing to work with you and bend the rules for you if you talk to them kindly and with a good attitude.